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KTM AG takes a PIT STOP for the future!

KTM AG prepares application for judicial restructuring proceedings with self-administration.

A redimensioning of production should lead to a gradual adjustment in excess stock at KTM and its dealers over the next two years. This will result in a reduction in operating performance at the Austrian sites totalling over EUR 1 billion in the years 2025 and 2026.

PIERER Mobility AG: KTM AG takes a pit stop for the future and prepares application for a judicial restructuring proceeding with self-administration

As reported, KTM AG is in the process of implementing restructuring measures due to high financing needs. The management of KTM AG assumes that it will not be possible to secure the necessary interim financing in a timely manner.

The Executive Board of KTM AG therefore decided to file the application for the initiation of judicial restructuring proceedings with self-administration over the assets of KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH on November 29, 2024.

The proceedings give the opportunity to continue to manage the assets under supervision and to reorganize the KTM Group independently. All other subsidiaries of KTM AG, in particular all sales companies, are not affected.

The aim of the proceedings is to agree a reorganization plan with the creditors within 90 days. A redimensioning is intended to sustainably secure the existence of the KTM Group and to create the basis for emerging strengthened from the process.

“Over the past three decades, we have grown to become Europe’s largest motorcycle manufacturer. We inspire millions of motorcycle riders around the world with our products. Now we are taking a pit stop for the future. The KTM brand is my life’s work, and I will fight for it.”

Stefan Pierer, CEO of KTM AG

Making KTM robust for the future

Since September 2024, Gottfried Neumeister has joined the Executive Board as Co-CEO. Stefan Pierer: “Gottfried Neumeister has brought impressive experience and a breath of fresh air and has made a significant contribution to addressing the current situation. I am convinced that together we will get the company back on track for success.”

“The enthusiasm of our employees is our most important competitive advantage. Their passion is the reason why KTM is globally synonymous with peak performance. We build our motorcycles reliably and robustly for every race, for every terrain. Now it’s about making the company robust. Robust for the future. So that we can quickly focus again on what we do best: building the coolest motorcycles in the world.”

Gottfried Neumeister, Co-CEO of KTM AG

Bold and profound measures

For the success of the restructuring proceedings, a restructuring plan must be agreed upon with the creditors. Stefan Pierer: “The core shareholders stand by KTM and PIERER Mobility and its stock market listing. The goal is clear: KTM should emerge stronger from this difficult time.”